Spear-FM Aims To Be Among Top 3 Indian Contract Logistics Company In Coming Years
Contract logistics company Spear-FM has chalked out an ambitious plan for India. The Pune-based firm Spear Logistics, which was acquired by French firm FM Logistic in 2016, wants to be in the top three Indian contract logistics company in next three years.
Spear-FM is currently in top 5 contract logistics companies in India.
Talking to BW Businessworld, Gautam Dembla, Managing Director of Spear-FM, said “In terms of revenue growth, we have already grown at a CAGR of over 30 per cent in last five years which is higher than that of contract logistic industry in India. We aim to double our revenue in next three years.”
To help achieve this growth, the company has planned to invest 50 million euros (approx. Rs 380 crore) within the next three to five years for India. The main investments planned by Spear-FM in India will be used for creation of multi-client sites close to the main Indian cities, starting with Mumbai and Delhi.
Related Article: Indian Contract Logistics Industry Pegged At $1.3 Billion: Gautam Dembla, Spear-FM
Part of the investments will also be allocated for storage and material handling equipment. Dembla said the company has already spent some of this on next generation WMS (warehouse management system).
Transportation and warehousing play a significant role in helping the company to grow and prosper.
At present 85 per cent of Spear-FM’s revenues come from its warehousing business and the remaining 15 per cent from transportation. The firm is now developing multi-client facilities across the country and with this it expects transportation revenue share increase to 30 per cent.
“The key is to have our warehouses close to our customers,” added Dembla.
The logistics company has 3.2 million square feet of warehousing space with over 75+ warehouses across 30 cities with 3000 employees. It aims to take the tally of warehouses to 100 in the next one year.
Apart from transportation sector, the company is working to leverage FM Logistic global customers, especially in the FMCG, retail and consumer goods sectors.
FM Logistic aims to be a preferred partner for its customers with a significant footprint in the country. In terms of manpower, India is the fourth largest market for FM Logistic.
When it comes to automotive sector, the company’s auto portfolio includes major Indian and international market leaders like John Deere, International Tractors, Mahindra Two-Wheelers, Bajaj Auto, Honeywell Turbo Technologies, TI Cycles, Federal Mogul, Dana Spicer among others.
